NYSE$TDC

Teradata Corp · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Teradata exceeded expectations in Q2 2020, demonstrating resilience amidst the COVID-19 pandemic.

Teradata reported second-quarter revenue of $457 million, exceeding expectations. The company achieved 8% ARR growth, strong recurring revenue growth, significant free cash flow, and solid earnings per share. Despite a net loss of $(43) million under GAAP, non-GAAP net income was $26 million, or $0.24 per diluted share.

  • Second-quarter results exceeded Company expectations on key revenue, profit and cash flow metrics
  • Annual Recurring Revenue (ARR) increased 8% reported and 9% in constant currency from the same period of the prior year
  • Second-quarter recurring revenue of $358 million exceeded Company’s guidance range
  • Operating cash flow improved to $130 million and free cash flow totaled $115 million

Headline financials

Total Revenue

$457M

Previous: $478M-4.4%
EPS (adj)

$0.24

Previous: $0.29-17.2%
Public Cloud ARR

$1.45B

Previous: $1.35B+7.7%
GAAP Gross Margin

56.0%

Previous: 49.4%+13.4%
Non-GAAP Gross Margin

58.9%

Previous: 52.7%+11.8%
GAAP Operating Margin

1.8%

Previous: 2.1%-14.3%
Non-GAAP Operating Margin

14.0%

Previous: 10.7%+30.8%
Capital Expenditures

-$23M

Previous: -$27M+14.8%
Free Cash Flow

-$66M

Previous: -$28M-135.7%
Net Income

-$43M

Previous: -$1M-4200.0%
Operating Income

$8M

Previous: $10M-20.0%
Gross Profit

$256M

Previous: $236M+8.5%
Cash & Equivalents

$494M

Previous: $635M-22.2%
Total Assets

$2.1B

Previous: $2.12B-1.0%
Stock-Based Comp

$31M

No prior period

Revenue & EPS history

Teradata · Revenue · Quarterly

$457M

Q2 2020-4.4%vs Q2 2019
Beat estimate in 13 of 16 quarters(81%)
ActualEstimate

Revenue by segment

Teradata · $82M total across 1 segment · Q2 2020

  • Consulting
    $82M-26.1%

Forward guidance

For the third quarter of 2020, Teradata expects recurring revenue between $359 million and $361 million. GAAP loss / earnings per share in the third quarter of 2020 is expected to be in the range of $(0.03) and $0.00. Non-GAAP earnings per share, excluding stock-based compensation expense and other special items, in the third quarter is expected to be in the $0.28 to $0.31 range.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-1.1%

Avg return

Earnings day

+1.1%

Avg return

5 days after

+0.2%

Avg return

30 days after

42%

29 / 69 earnings

Positive

+34.6%

Q4 2020

Best reaction

-22.0%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.7%+7.3%+11.8%
Q4 2025+29.6%+14.8%-9.1%
Q3 2025+32.6%+34.8%+44.2%
Q1 2025+1.8%+7.5%+2.0%
Q4 2024-20.3%-19.7%-26.5%
Q3 2024-14.3%-10.1%-4.2%
Q2 2024-17.8%-14.8%-8.3%
Q1 2024-12.1%-11.3%-13.7%
Q4 2023-22.0%-23.7%-22.3%
Q3 2023+2.5%+4.9%+4.0%
Q2 2023-17.3%-19.3%-19.6%
Q1 2023+8.3%+7.0%+18.3%
Q4 2022+18.6%+20.8%+8.5%
Q3 2022+4.8%+11.0%+11.8%
Q2 2022-7.3%-10.0%-16.9%
Q1 2022-13.7%-17.2%-7.8%
Q4 2021+21.8%+19.9%+8.9%
Q3 2021-13.6%-10.9%-26.7%
Q2 2021-3.1%+3.0%+14.4%
Q1 2021-17.1%-17.6%-0.4%
Q4 2020+34.6%+95.2%+50.0%
Q3 2020+6.8%+4.9%+17.5%
Q2 2020+19.5%+17.3%+9.6%
Q1 2020+2.8%-7.7%-3.5%
Q4 2019-5.1%-6.7%-13.7%
Q3 2019-16.0%-14.5%-13.1%
Q2 2019-9.9%-8.6%-15.7%
Q1 2019-11.2%-14.5%-22.5%
Q4 2018-1.9%-0.8%+1.5%
Q3 2018-1.7%+0.1%+3.4%
Q2 2018+0.3%+4.5%+9.1%
Q1 2018-6.7%-3.8%-2.7%
Q4 2017-12.7%-9.7%+5.7%
Q3 2017+8.4%+4.0%+13.3%
Q2 2017+7.2%+10.5%+5.0%
Q1 2017-8.8%-9.0%-10.6%
Q4 2016+5.0%+4.6%+4.0%
Q3 2016-10.4%-9.9%-9.1%
Q2 2016+8.0%+11.1%+10.8%
Q1 2016+15.3%
Q4 2015-0.6%
Q3 2015-3.2%
Q2 2015-17.3%
Q1 2015-9.1%
Q4 2014-11.4%
Q3 2014+4.0%
Q2 2014-1.3%
Q1 2014-9.9%
Q4 2013-0.3%
Q3 2013-3.2%
Q2 2013+7.2%
Q1 2013-1.3%
Q4 2012-5.7%
Q3 2012-7.7%
Q2 2012+10.0%
Q1 2012+1.3%
Q4 2011+1.7%
Q3 2011-3.0%
Q2 2011+0.4%
Q1 2010+1.5%
Q1 2011+0.4%
Q4 2010-0.5%
Q4 2008-0.5%
Q1 2009-0.5%
Q3 2010+2.0%
Q3 2009+2.0%
Q4 2009-5.3%
Q2 2009-5.3%
Q2 2010-5.3%

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